Which of the Following Is Not Considered a Basic Type

question 57

Multiple Choice

Which of the following is not considered a basic type of adjusting entry?

• A)An entry to convert a liability to a revenue.
• B)An entry to accrue unpaid expenses.
• C)An entry to convert an asset to an expense.
• D)An entry to convert an asset to a liability.

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Definitions:

Construction Period Interest

Interest expense incurred during the construction of a long-term asset, which can be capitalized and added to the asset's cost basis.

IFRS Guidelines

The set of international accounting standards and principles that guide how financial statements should be prepared and disclosed.

Impairment Loss

A reduction in the recoverable amount of a fixed asset or goodwill below its carrying amount recorded on the balance sheet.

Input Market

The marketplace where resources or raw materials that a company uses to produce its products are bought and sold.